The minimum amount which is set by futures exchanges to be maintained daily by the parties to a futures contract in their margin accounts, in response to fluctuations in the settlement price. As long as the margin account is maintained at or above the maintenance margin, a futures position can still be held. If the margin account drops below the maintenance margin, a margin call would be sent to the futures holder to top up his margin account with more cash or marketable securities in order to raise the margin level back to normal. The margin can also be brought back to the desired level by taking offsetting positions in open futures contracts. The maintenance margin level is usually set slightly below the initial margin.
January 21, 2025
